25/01/2012 13:32 GMT | Updated 25/01/2012 13:34 GMT

Angela Merkel Says Greece May Be Beyond Rescue

Angela Merkel has cast doubt for the first time on Europe's chances of saving Greece from financial meltdown and sovereign default, conceding that Europe's first ever multibillion bailout coupled with savage austerity was not working after two years of crisis that has brought the single currency to the brink of unravelling.